Lowe's slashes full-year sales outlook amid DIY spending pressure

Investing.com - Lowe’s has cut its full-year sales guidance, as CEO Marvin Ellison flagged pressure on the home improvement retailer from sluggish spending on large renovation projects.

Shares of Lowe’s dropped by more than 2% in premarket U.S. trading on Wednesday.

Elevated interest rates have pushed homeowners to dial back expenditures on big-ticket refurbishments or makeovers, as these are often funded by loans, while higher mortgage rates and increased home prices have weighed on the broader real estate market.

In a statement, Ellison said that the near-term operating environment "remains dynamic," including "pressure in discretionary DIY spending," even as sustained growth in Lowe’s professional and online services helped fuel a fifth-straight quarter of positive comparable sales.

Total second-quarter net sales rose by 8.3% versus a year ago to $25.96 billion, compared to Bloomberg consensus estimates of $26.13 billion. Adjusted per-share earnings, meanwhile, stood at $4.40, up from $4.33 a year earlier and above forecasts.

But Lowe’s said it was updating its outlook for the 2026 fiscal year to reflect operational results for the first half of the year as well as current demand trends.

Comparable sales are now anticipated to be flat as compared to the prior year. Previously, Lowe’s said it expected the figure to be in a range of flat to growth of 2%. Total revenue is tipped to come in at $92 billion, versus a prior band of $92 billion to $94 billion.

Lowe’s said the outlook includes tariff refunds recognized during the second quarter and excludes any potential additional tariff refunds in the second half of the year.

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